If a monopolist's marginal cost equals its marginal revenue
A)output should be raised.
B)output should be reduced.
C)production is at its most efficient level.
D)profits are maximized or losses are minimizeD.

Question

Quizplus · Accepted Answer

When a monopolist's marginal cost equals its marginal revenue, it indicates that the firm is maximizing its profits or minimizing its losses, as this is the point where the additional cost of producing one more unit equals the additional revenue gained from selling that unit.

If a Monopolist's Marginal Cost Equals Its Marginal Revenue